DWP disputes claims overpayments were made due to staffing cuts in Preston

Duchy House, Lancaster Road, where DWP administers Carers’ allowance. CREDIT: Google

The DWP has denied claims that overpayments of Carers’ Allowance which could see thousands of people face prosecution was caused by staffing cuts at its Preston administration centre.

A report by The Guardian newspaper claimed more than a thousand carers face being prosecuted for fraud and a further 10,000 carers could face fines, as the Department of Work and Pensions prepares to recover money mistakenly paid out over several years.

Carers’Allowance is administered nationally at Duchy House, Lancaster Road, Preston, but one worker – who has asked to remain anonymous – told Blog Preston: “This problem has happened because DWP have cut staff there (from 900 staff across three of the four buildings in Preston Office Centre in 2007 to less than 400 in Duchy House today) and they didn’t have enough staff left to do basic data-matching with HMRC records.

“That’s allowed carers who don’t know the benefit rules to rack up overpayments of anything between 18 months to more than five years worth of benefit (from £5000 to over £15,000), all of which could have been stopped after a few months if DWP had put more staff on the data-matching.”

The Guardian report on October 7 said: “The DWP has had access to records from the taxman that allow it to check carers’ eligibility for the benefit, but continued to pay the sums anyway.”

“Following investigations into the overpayments, the DWP is understood to be seeking hundreds of criminal prosecutions, while others face fines through civil ‘compliance action’.

“As well as any potential financial penalties, carers – who are typically on low incomes – will have to return the overpayments, which in some cases add up to many thousands of pounds.”

More: How you can help people in Preston going through benefit assessments

But the DWP disputed the claims, saying: “Staffing levels can change in line with demand. We fully recognise the vitally important role carers play in our society and, as a result of an increase in the number of claims for Carer’s Allowance, we have recruited a further 150 staff in the past year to maintain a high level of customer service.

“This underlines our commitment to ensuring that carers get the support that they need, and since 2010 the annual rate of Carer’s Allowance has increased regularly, meaning an additional £550 a year for those who receive it.”

A spokesperson said there are currently no outstanding decisions relating to Carers’ Allowance prosecutions.

He added it is the responsibility of the claimant to report any change in circumstances which may affect their eligibility for Carers’ Allowance.

This could be a change in earnings, starting a college course or a change in the amount of care the person needs.

He told Blog Preston: “It is not true to suggest that DWP has been deliberately allowing fraudulent claims to go unidentified. We work extremely hard to make claimants aware of their responsibility to provide correct information when making a benefit claim and to report any change in their circumstances.

“We inform customers of the consequences of incorrect or late reporting of information, including prosecution, financial penalty and debt implications. We are introducing new technology to make it easier to identify and prevent overpayments and improve debt recovery.”

“It is also misleading to suggest we are allowing vulnerable people to face criminal prosecution. Being in arrears does not equate to prosecutions and there are no outstanding decisions within Carer’s Allowance relating to potential prosecutions.”